Results for: RevPAR Growth

The Indian hospitality sector has demonstrated robust performance in the first quarter of 2024 (January-March), exhibiting a Year-on-Year (Y-o-Y) growth primarily attributed to an 8.5% increase in Average Daily Rate (ADR) compared to Q1 2023. This surge in ADR has resulted in a significant 11.4% growth in Revenue per Available Room (RevPAR).

The report by JLL further highlights the expansion of branded hotel openings, with 36 new hotels and 2,316 keys added to the inventory. Notably, 75% of these new keys were located in Tier II and III cities, indicating the growing demand for hospitality services beyond metropolitan areas.

Major factors contributing to this growth include an increase in corporate travel, weddings, and Meetings, Incentives, Conferences, and Exhibitions (MICE) demand. The sector also witnessed a healthy 5.5% Quarter-on-Quarter (Q-O-Q) growth in RevPAR in Q1 2024 compared to Q4 2023. This can be attributed to higher levels of corporate travel in Q1 2024 as opposed to Q4 2023, which typically experiences a seasonal decline.

The positive momentum from the first quarter is expected to continue into the second quarter, with business travel, MICE, and weddings driving the busy season. Additionally, the following quarter will also see a surge in leisure travel, particularly during the summer holidays.

Marriott International, Inc. has reported its first quarter 2024 financial outcomes. The company saw a global increase in comparable systemwide constant dollar Revenue Per Available Room (RevPAR) of 4.2%, with international markets experiencing a particularly strong 11.1% growth. Adjusted diluted EPS rose to $2.13 from $2.09 in the same period last year. During the quarter, Marriott welcomed approximately 46,000 net rooms, including around 37,000 rooms under its agreement with MGM Resorts International. The company has a global development pipeline of over 3,400 properties and nearly 547,000 rooms. Financial highlights for the quarter include a 7% increase in base management and franchise fees, a 10% surge in co-brand credit card fees, and a 4% rise in incentive management fees. Marriott repurchased 4.8 million shares of common stock for $1.2 billion during the quarter, and as of April 26, has returned $1.7 billion to shareholders through dividends and share repurchases. The company raised its full year earnings guidance and expects to return between $4.2 billion and $4.4 billion to shareholders in 2024.